Nothing New: Democrats Make A Mess; Republicans Clean It Up
By Todd Schoenberger
Monday Nov 13, 2006
Dear American Capitalist reader:
Now that the hangover has ended from last week’s elections, we can look forward to a pointless and utterly ridiculous first 100 days when the new Congress convenes in January.
My opening comments have nothing to do with the weak-kneed Democrats winning or the simply-minded Republicans losing, but it has everything to do with how both parties work together to push America further in all the key areas: Defense, Economy, and Healthcare.
I’ve been hearing a lot about “gridlock” and how it’s good for stocks. Well, folks, it can be good, but it’s not a reality now. Gridlock is good when there’s a split government, and the fact that the DEMS control both the House and the Senate (and captured 24 out of 36 gubernatorial races) signals a Democratic mandate will take place for the next two years.
What Capitol Hill needs now is compromise. It worked for Reagan in 1986 with his third and final component of the Tax Reform Act of 1986 and it worked for Clinton in 1996 with his welfare overhaul bill. Well, it’s got to work now because the world is obviously different than it was 10 or 20 years ago and hopefully, the DEMS will put America’s interests in front of their own.
The fear now is Democrats will look to dare President Bush to veto some of the more popular measures discussed on Sunday morning talk shows. (Speaking of which, could Joe Lieberman have been any more vague about his political party affiliations on yesterday’s Meet the Press? Come on, Joe, stop acting like a two-year old and just say what we already know: You’ll vote with the DEMS!)
Key measures will be raising the minimum wage and embryonic stem cell research. Both will easily pass the House and the Senate and the President will be backed into a corner to decide whether to veto or sign into law. My take: Bush will veto both. Sure, the DEMS will then use this action to push a pro-Democratic agenda and look to recapture the White House in 2008. But, who are they thinking is going to win the Democratic nomination? Hillary Clinton???
HA! No chance. I’m only 36 and can say with a straight face that there is no chance a woman will ever be President in my lifetime. It’s just not a reality, but the DEMS won’t see it that way. They’ll implode the same way they did in the early ‘90s.
My thesis is this: All the talk about higher taxes and anti-business rhetoric because the DEMS won last Tuesday is pure nonsense. None of it is true. Sure, the Democrats will have their party and mess things up over the next couple of years but as history has always shown us, the Republicans will come in and clean up the mess.
The markets will continue their uptrend and the economy will grow; status quo will become the new catch phrase in Washington. Then we can get back to the business of being strong leaders and pushing the Republican agenda forward.
Until next Monday,
Todd M. Schoenberger, Senior Equities Analyst
Diligent Investor
www.DiligentInvestor.net